World Cup Fever at Work: Does German Workers’ Compensation Cover Injuries During Staff Soccer?

Quick Hits

• An injury sustained during a soccer tournament organized by the employer is not a work-related accident.
• Coverage under statutory accident insurance may apply, in particular, if the event constitutes a company-sponsored social gathering.
• Events aimed exclusively at a specific group of people do not meet this requirement.
• Supporting activities, catering, or spectator attendance do not alter this classification.

The Case—Final Match With a Torn Cruciate Ligament

The employee’s (plaintiff’s) employer—a company with approximately 3,900 employees—organized a soccer tournament featuring preliminary rounds, a final, and an evening event. A maximum of approximately 1,500 people could participate in the preliminary rounds. On the day of the final, about 315 employees actively participated. The employee injured her left knee during the final match. Among other things, she was diagnosed with a torn cruciate ligament. The responsible workers’ compensation association refused to recognize the injury as a work-related accident. The employee’s lawsuit before the Hanover Social Court was unsuccessful.

The Decision—No Insurance Coverage for a Selective Sports Tournament

The court ruled that it was not a work-related accident under Section 8 of Book VII of the Social Code (Sozialgesetzbuch (SGB VII)). Playing soccer was not objectively related to the insured activity. While company-sponsored social events may be covered by insurance, SGB VII, Section 8 requires that they are in the company’s interest, sponsored by management, and designed for the participation of the entire workforce. This was lacking in this case, because the tournament format appealed from the outset only to a limited, athletically active portion of the workforce. The supporting program, spectator participation, and evening event were insufficient to make the event a company-sponsored social gathering.

Key Takeaways

The distinction between work-related and private accidents is a regular topic of discussion in the German courts. We have already published articles on this subject, including an incident of choking on coffee that was considered a workplace accident, and escaping an explosion while working remotely at home that did not qualify as a workplace accident. The ruling by the Hanover Social Court aligns with this line of reasoning: Sports-related corporate events must be legally assessed differently from traditional company parties. For employers, this means that the decisive factors are the concept, the objectives, and the actual opportunities for participation—not merely the role of the organizer or a supporting program.

The decisive factor is whether the event can be classified as a company social event within the meaning of SGB VII, Section 8. This requires a format that is objectively designed for the participation of the entire workforce, or at least the majority of it, and that promotes team spirit. Competitive sports tournaments with a selective group of participants generally do not meet these requirements. The presence of spectators, social elements, or an evening event do not alter the assessment as long as the core element remains a sporting competition.

Employers may therefore want to document the event’s purpose and target audience in the invitation and program. The following applies: The invitation must be addressed to the entire workforce or a defined segment of the workforce, and participation must be objectively possible for everyone. Open, inclusive formats with a mandatory communal program are more likely to qualify for insurance coverage than selective competitions. For sporting events, employers may want to offer an alternative program for employees who are not interested in sports. Events associated with particular risks—such as a hot-air balloon ride—are, however, difficult to classify as open, inclusive formats. It is easier to conduct a case-by-case review when the objectives, schedule, timing, location, and opportunities for participation are consistently aligned

Ogletree Deakins’ Berlin and Munich offices will continue to monitor developments and will post updates on the Cross-Border, Germany, Sports and Entertainment, and Workplace Safety and Health blogs as additional information becomes available.

Karl Melzer is an associate in the Berlin office of Ogletree Deakins.

Lela Salman, a law clerk in Ogletree Deakins’ Berlin office, contributed to this article.

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